GBP/JPY Forecast May 9, 2017, Technical Analysis

The GBP/JPY pair initially gapped higher at the open on Monday, but turned around to fall significantly later in the day. The market seemed to find quite a bit of support near the 145.50 level, and bounced from there. I think there is a lot of noise all the way down to the 145 handle, so I am still bullish of this market but I realize that it needs a bit of risk appetite around the world to continue to go higher. The British pound has been oversold until recently, and it is starting to flex its muscles again. Because of this, I think that the market will continue to attract a lot of traders, but will also be volatile as per usual.
Buying the dips going forward
I continue to buy dips going forward, as I think there is plenty of reason to think that this market goes higher. After all, the markets breaking above the 145 level was the most recent bullish sign that we have seen, and I think the longer-term we will go looking for the 148 handle, and then eventually the 150 handle which of course will be a nice round number that a lot of traders will be looking towards. I don’t know if we can break above there, but if we do that would be an extraordinarily bullish move. I think that’s what we’re going to have to find out over the longer term, and therefore I believe that the buyers will continue to look at these dips as buying opportunities. If there is a reasonable amount of risk appetite out there, as normally shown in stock markets, I believe that this pair continues to grind towards the upside and should offer profits for buyers.
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